Timeshare Fee Plan Shut down By Lawmakers

A proposed $5 nightly fee on timeshares in unincorporated Horry County was scrapped Tuesday night in a 9-2 vote by County Council.

The vote closed a two-year effort to charge the vacation units a fee similar to the accommodation tax now charged to hotels, motels and campgrounds.

The fee would have been used to maintain beaches, roads, sidewalks and other services related to the tourism industry and was approved by the council twice in 2004.But ultimately the fee was dropped due to lack of support and the likelihood of a major lawsuit against the county.

The cities along the county's coastline, where most timeshares are located, never got behind the county's fee proposal and the few timeshare companies in unincorporated Horry County said Tuesday a fee on them alone would create a competitive disadvantage.

"Your national and international timeshare developers are all located on the beach in the city of Myrtle Beach and North Myrtle Beach," said Blaine Liljenquist, CEO of Plantation Resort, a time share company. "Plantation Resort used to have monopoly. We are now a relatively small player and have to compete with these national and international timeshare developers."

Liljenquist said time shares may not pay a fee, but generally pay higher property taxes than hotels that do pay because time share buildings are spread out and billed separately.
Councilman Harold Worley and Chairwoman Liz Gilland supported the fee.
"It is just not fair for some to pay and some to not," Worley said. "We all understand how strong the time share industry is but at the same time somebody is going to have to pay the bill for beach renourishment and fire and EMS."

Timeshares are an increasingly large part of the local tourism industry. In 1995, they accounted for 1 percent of the industry but made up 10 percent by 2002, according to Horry County. Gilland warned that the booming industry will put increasing pressure on tourism-related services and if no fee is created, taxpayers may eventually have to pay the bill.

"This time we can look into the future and say there is going to be a problem. That is why I am disappointed in the cities of Myrtle Beach and North Myrtle Beach," Gilland said. The state Legislature also made it difficult for the county to collect money from timeshares by creating a legal exemption on such fees, she said.
Councilman Kevin Hardee said a fee may make the local industry less competitive with other vacation destinations. Also, he said the county should not be so eager to use taxpayer money to fight the industry in the courts.

Councilman Marion Foxworth said he supports a fee on timeshares but legal battles could cancel out any benefits. A lawsuit from the industry is likely, but the county would also have to battle the state General Assembly over the county's right to collect a fee contrary to state law.